Do you trust the financial strength of the Erste Group Bank and would you like to be part of the success of this renowned Central European financial group? The EGB Fix-To-Float/2024 Subordinated Bond with fixed as well as floating interest-bearing offers an interesting yield potential.
During its term, this Subordinated Bond offers its clients two types of coupons: fixed and floating. In the short-term horizon of two years, in the current low-interest environment it offers an above-standard fixed coupon of 4% p.a. In the following years until bond maturity, the yield will be derived from the development of the current market rate of six-month PRIBOR, the minimum coupon being 3.3% p.a. and the maximum bond yield disbursed being 6% p.a.
The EGB Fix-To-Float/2024 Subordinated Bond is ideal for anybody who expects an increase of interest rates over a longer period of time.
What does “Subordinated” mean?
In case of liquidation or insolvency of the issuer, in this case the Erste Group Bank AG, any unsubordinated liabilities (such as mortgage bonds and senior bonds) would be first covered, and only then the funds of investors holding subordinated bonds would be paid out. With a view to this risk, subordinated bonds offer a higher yield as a reward.